Affin’s 1Q net profit down on lower non-interest income, higher opex


AFFIN Bank Bhd’s net profit declined 44.2% year-on-year to RM68.9 million in its first quarter ended March 31, 2021 (1Q21), compared to RM123.6 million last year, mainly due to lower non-interest income and higher operating expenses (opex).

However, higher net interest income, lower allowance for impairment losses and higher income from Islamic banking have cushioned the impact.

Revenue fell 14% to RM537.6 million from RM624.8 million in the same period last year.

“Affin is mindful of the ongoing downside risks due to the pandemic that could pose disruptions to the banking business.

“Prudent risk management practices and cost containment measures will remain on the group’s business strategy so that the group can continue to withstand the uncertainties and respond appropriately to any changes to the operating environment,” Affin president and group CEO Datuk Wan Razly Abdullah Wan Ali said in a statement today.

He said the group would also ensure its capital position is strong to safeguard it from any financial distress caused by the pandemic.